Using KPI’s to Coach for Performance Improvement

Several years ago, I led a culture change in a manufacturing organisation. We removed a top down, high dominance structure and replaced it with customer focussed cells. During the reorganisation, we moved relatively inexperienced people into new leadership roles. Why did we do this? Because the company had realised that a top down, “tell them what to do” culture wouldn’t provide the speed of change needed to complete successfully. They needed empowered, autonomous teams with the potential to deliver results. 

So how do you manage empowered, autonomous teams, given that they must be autonomous and not managed? 

 How do you ensure that they understand the company goals and all their actions are geared to achieving them? The answer is to use the overall company goals and objectives to define team goals and objectives. 

A system of performance measurement (KPI’s) and regular review meetings can then be used to deliver the goals, but allow the leaders autonomy with their teams. 

If managers hold regular KPI review meetings, they clearly define what they expect from their teams and action plans can be developed to meet the company goals. Thus, the company has systems to manage the delivery of company goals. 

The impact on individual employees is that their goals and objectives are very clearly defined. They and their peers can clearly see who is delivering against expectations and who is not. 

For managers, performance coaching then becomes more objective. High performers are easily distinguished and can be rewarded accordingly and poor performers can be identified and then managed objectively, with performance reviews focussing on results and how to achieve them. This avoids personal criticism, which makes the review easier for the employee. They become more receptive and less threatened by the discussion. Focussing on achieving objectives and the steps they must take enables the poorer performers to achieve more than they would without this focussed coaching. If the poor performer is repeatedly unable to meet goals, then the management of their exit from the organisation is easier for both the manager and the employee. 

Using KPI’s with regular, action based reviews, gives teams and their leaders a clear view of what is expected from them and gives the responsibility and autonomy for the delivery of results to the team. With clear direction, the teams are then empowered to deliver high performance against company goals.

Written by Jane Burns - Manufacturing Coach